Skip the queue and apply for a personal loan online!

A loan that does not require any collateral or security and is offered with minimal documentation is considered as a personal loan. These funds from the bank or any non-banking financial company (NBFC) can be used for any financial need, but like any other loan, this one too must be repaid to the bank, in the agreed amount of time – be it months or years. The amount which can be used for anything from funding a holiday to paying for medical treatment needs to be repaid to the financial institutions in instalments.

Like most loans, there are different ways to apply for personal loan online. They are as follows:

-    If you have an account with the bank from which you want to take the loan, you can apply for personal loan online, through the bank’s website. Almost all banks – ICICI, HDFC, HSBC, SBI, etc. have sites with personal loan sections where if their users require personal loans, apply online. The bank will have a form in which you will have to fill in all your basic information and check your eligibility and even fill out the application form. Each user will also be required to attach scanned copies of their documents, to apply for personal loan online. This is only possible if the user has a net banking account with the bank.

-    Another way to apply for personal loan online is via email. You will need to email all your details, including the amount you want to borrow, and the bank will review your eligibility and respond to you.

-    To get a personal loan, apply through an ATM as this feature is now available at kiosks as well. Once the request for a loan has been raised, a relationship manager will get in touch and take it forward.

Once the online personal loan has been requested for, the application is processed your bank will verify everything from your address to credibility and financial information. Unlike other loans, there is no other collateral other than yourself, due to which the verification process is longer. To ensure smooth approval of the loan, your credit score needs to be 750 or more. If the bank has approved the loan and the EMI is not repaid, the bank will levy a penalty on the outstanding amount. If multiple EMIs are skipped, legal action can be taken.

Five benefits of investing in a two-wheeler insurance

Two wheelers are the easiest way to commute, especially on the traffic-congested roads of India. Cars take up too much space and are a much more significant investment and responsibility, so two-wheelers work as the best bet for most. With any asset, be it a two-wheeler a car or anything else, misfortune could fall and damage the vehicle in an accident or event of a natural disaster. Whatever the case, it is advisable for all two-wheeler owners to invest in two-wheeler insurance to cover the costs of any damage. One can even easily apply for a two-wheeler insurance online as it is mandatory for all bike owners in India.

Some of the benefits of investing in two-wheeler insurance are:

-    Bikes are susceptible to burglaries and theft since they are relatively easy to transport and move. In crowded cities that are more accident prone, bikes also get scratched and damaged. The two-wheeler insurance covers the service or replacement cost of the vehicle and makes it easier on the pockets of the vehicle owner.

-    When disaster strikes, there’s not much one can do about it but take shelter. Alas, our vehicles, if not protected, can get easily damaged. Two-wheeler insurance can come in handy at times like this and save you from heavy expenses that may occur during a fire, earthquake, flood, landslide, etc.

-    Having a two-wheeler insurance means that the owner of the vehicle does not have to bear the expenses of fixing the damages to the vehicle, property or surrounding in case an accident arises. The insurance ensures that the owner of the two-wheeler is free from any third-party liability, where the vehicle was part of the accident. This is one of the main reasons why insuring the two-wheeler is mandatory.

-    Investing in an online two-wheeler insurance ensures that the owner of the vehicle can avail discounts like a ‘no claim bonus’. Some insurance companies even offer great discounts on spare parts of vehicles which comes in handy if the bike is a luxury one and very expensive.

-    With the two-wheeler insurance also comes a sense of safety and security as it also helps in saving money on fines imposed and other more substantial expenses.

Some of the aspects that are not covered in two-wheeler insurance are the normal wear and tear of the vehicle, mechanical or electrical breakdown, depreciation of the vehicle over time and damage due to nuclear activity. Before getting your two-wheeler insured, make sure you go through the documents carefully to be clear on what you are signing up for.

What are the different types of credit cards available in the market?

A credit card is one that enables its users to borrow money and make purchases from a bank, as long as the money is paid back within a set amount of time. If the money borrowed is not credited back, interest will be levied, on top of the borrowed money, as a fine. These small plastic cards make life very simple as they allow you to purchase goods and services on credit and to get the card, one can even apply for credit card online. Most banks provide credit cards to their customers and offer reward points and benefits on every spend. For every person, there will be a credit card that is an ideal match.

The different types of credit cards available for customers are:

-    Classic credit cards
These credit cards come with basic features like a cash advance, interest-free credit period, rewards programme, additional cards, insurance and dedicated customer support. These cards are offered at low finance charges and do not carry any joining fee. One can apply for credit card online as it is simpler and easier to get.

-    Gold credit cards
These cards are mainly for individuals who have a higher level of income and a good credit score. One can apply for credit card online and avail the benefits it offers, such as higher cash withdrawal, higher credit limit, travel insurance, cashback offers and rewards programmes

-    Titanium credit cards
One of the premium types of credit cards available in the market, this card comes with a lot of benefits and privileges. One of the significant features of this card is the rewards programme with which the user can redeem the points for gifts, air miles and even avail cashback offers. With this card, there is also an interest-free credit period, annual fee reversal, insurance, welcome gifts, add-on facilities, beauty, travel and wellness offer and more

-    Rewards credit cards
With this type of credit card, these card holders get multiple rewards for every transaction irrespective of whether it is in retail stores or online. Reward points gained can be redeemed for products or services, air miles, travel offers, and even payments of purchases in instalments.

-    Corporate credit cards
With these credit cards that are offered to business establishments, personal transactions are only valid during the employment period with the company and not for personal use. These cards also offer more privileges since they are linked to corporates. There are offers on hotel accommodations, travel deals, business saving plans, expense management, fuel surcharge, airport lounge access and more, that can be availed through the corporate credit cards.

Here’s all you need to know about a Demat account

It is difficult to hold shares in physical form as it involves a ton of paperwork, a lengthy process and the risk of fake shares. To simplify this process of trading and investing, a Demat and trading account is essential as the stocks in this account remain in a dematerialised form. For this, a Demat account number is required as it functions like a bank account where all the money is held, and entries are made in the bank passbook as these securities are held in electronic form. The Demat account opening can be done with no balance of shares in it and with zero balance.

It is essential for those who invest in shares and keep up with the stock market to have a Demat account as this account holds all the financial instruments like shares, bonds, mutual funds, etc.

To open a Demat account in any bank, the documents required are as follows:

-    ID proof
-    PAN card
-    Proof of residence (ration card/phone bill/electricity bill)
-    Bank details (a cancelled cheque will do)
-    Two passport size photographs

In the form given by the bank, fill up all the details in the appropriate space provided and attach your documents at the end of the form. You will need to carry your original PAN card for verification purposes, along with a copy. Depending on which bank you open the account in, a basic fee is required to open the account. The fees differ with every provider, with some opening the Demat and trading account without charging any fee.

Some of the benefits of opening a Demat account are:

-    All your investments can be held in a single account as this account is not just for shares but debt instrument like bonds, too.

-    The problem of shares being transacted in lots of single or odd numbers no longer exists. Now, with the help of the Demat and trading account, this problem no longer exists.

-    Similarly, earlier, when securities had to be transferred one would incur extra costs due to stamp duty. This is not a problem anymore as the Demat account is all electronic.

-    After the Demat account opening, the risk of theft, fake shares, wrong deliveries, etc. have reduced due to the reduction in paperwork. Time taken for delivery has also decreased considerably. Once the account has been approved, the securities and company-related activities like stock bonuses and stock splits are automatically credited to your account.

- Paper made storing things more vulnerable as it was prone to wear and tear and damage. The demat and trading account makes these securities more convenient to hold and more straightforward to transfer with a nomination facility, in the unfortunate event of death.

Getting a personal loan?

Money borrowed from a bank, a non-banking financial company (NBFC), credit union or online lender and can be repaid in fixed monthly payments, is known as a personal loan. The rates of interest can differ depending on each institution. Any collaterals do not back most personal loans while a secured loan is usually supported by a house or car, which means that you will not lose the asset if you default. With a personal loan, as the name suggests, the loan amount can be used for any reason without letting the bank know what the loan is for.

Here are some things should know, before getting a personal loan:

1.    Personal Loan Eligibility

Though the eligibility criteria differ from one financial institution to another, the general criteria include age, occupation, income, capacity to repay the loan in time, residence and other essential general information. Check your personal loan eligibility with the help of the personal loan EMI calculator. To avail a personal loan, the person applying must have a regular monthly income whether salaried or self-employed. The eligibility of a loan also depends on the credit history of the person.

2.    Loan Duration

Typically, a loan can be given out for the duration of 1 – 5 years. In rare cases, the length of the tenure can be shortened or lengthened, but only with financial institutions that offer customisation.

3.    Fees and Interest Rates

The interest rates vary widely from lender to lender and make a huge difference in how much the borrower needs to pay over the life of a loan. The interest rates for personal loans usually range between 5 to 36 percent depending on the lender and credit history.

Many lenders also charge a fee to cover the cost of the loan processing, and this usually ranges from 1 to 6 percent of the loan amount.

Like how all lenders charge a fin if the loan paid past the given date, some lenders also charge a pre-payment penalty as this means that they will lose out on the interest they would have otherwise earned.

4.    Keep Your Options Open

It is a good idea to do adequate research on all potential financial institutions and compare what each one offers to see what suits you best. Make sure you have enough information on the key factors such as interest rate, loan tenure, processing fee, etc. before applying for a loan. Even when applying for a personal loan, be sure to apply to multiple institutions so you can pick as per your choice.

6 benefits of multi-currency forex cards

You have planned for your dream tour since many months. You are excited about the trip. Your family is over-joyed about going on their first international trip. Together, you’ll are ready to explore new places, culture, cuisines and share a unique experience altogether.    Yes, you have researched about the best places to visit and checked whether your flight is on time. But do you have a plan B? Do you know what to do if you or any of your family member suffers an accident or any other health scares?   

Do you have additional cash in place? These questions might be unanswered for now, but we have answers for all of them. Several banks are offering multi-currency forex card to make your task easier. This card acts just like your credit card that can be used in any MasterCard or VISA outlet abroad. You can use them during emergencies or make additional purchases.

Some primary benefits of using forex cards are:

1) If you plan to travel to many countries in one trip,  and you are carrying cash, it can get cumbersome. To make your travel hassle-free a multi-currency forex card comes handy. These cards are generally available in 22 currencies.

2) One of the primary reasons why travellers opt for a forex card is   due to the attractive rates. You can book the exchange rates well in advance and saves you from fluctuating prices in the market.   Imagine travelling to Europe, and you  have to exchange the Euro to INR rate, be ready for some mental gymnastics.        

3) Your forex cards  and bank account have no connection.They are standalone cards. A forex card works like a  debit card without even liking your account to it. There are many security measures included in the forex card such as a  chip, PIN code, and the benefit of blocking the card in case of theft.             

4) Unlike travellers’ cheques, forex cards are widely accepted. You can use your card at retail outlets, ATMs and even on e-commerce websites.  

5) Some multi-currency forex card offers concierge services. Imagine having someone take you through the immigration, baggage counter, experiencing the services chauffeur, etc. the moment you land in your destination? Perfect, right?

6) The best part about forex cards is that the left-over foreign currency can be used in any other destination. They come with a validity period of 3-5 years. You can also encash it by paying a cash-out fee.

Now that you know the benefits of a multi-currency forex card, how do you intend to spend them on your next trip abroad? 

7 financial tips every NRI should know

The moment you step out of your country, you have to find a different way to manage your funds. This mainly includes taking care of bank accounts, investments, assets, etc. Also, you have to prepare yourself, if you are sent to India due to any unforeseen circumstances. Investing in India has become simpler and hassle-free, thanks to the variety of services offered by the Indian banks.  Moreover, RBI has special investment schemes in place for NRIs. 

Apart from opening an NRI bank account, which are the other options that an NRI can look up to?

1) Open an NRE/NRO account: One of the key   options that bank officials offer is an NRI account. Under this category, you have two options to choose from NRE and NRO account. If you still have some source of income flowing in India, you can deposit them in your NRO account. Else, you can store your foreign curre ncy in India through an NRE account after converting the same in the rupee.    

2) Look out for other means of investment: The other options that you can opt for apart from an NRI bank account are real estate, the  stock market, mutual funds, fixed deposits, etc. However, there are some restrictions for NRIs from the United States of America (USA) and Canada who select the mutual funds' option.   Only a few mutual funds companies accept investments from these countries.

3) Look for Indian bank branch in the residing country:  If you are comfortable operating with an Indian bank, then research about the banks around the place you will be staying. Managing funds through an Indian bank is more comfortable   , especially if you have plans to move to India in the future.  

4) Ponder upon before going for loans: One of the biggest advantages of being an NRI is that you can take a loan from both India and overseas. Consider the best one before freezing on an option regardin g interest rates,  inflation rate, currency rate fluctuations, etc.    

5) Beware of currency fluctuations: The biggest drawback for an NRI is the currency fluctuations as that could affect his/her investment plans. A slight change in the Indian currency can impact your returns.

6) Keep yourself posted with economic conditions: If you own properties or have money in India, then be aware of the economic conditions in India. Change in taxes and economic reforms could affect your funds.

7) Buy health insurance: One of the major concerns for NRIs is health treatment. Medical expenses overseas are expensive. They often prefer to get their treatment in India. So, purchasing health insurance in India is always a welcome idea. However, do check the geographic coverage your policy has to provide. 

Which options do you find feasible? An NRI bank account or other investment options?